9. OYEDELE PHILEMON
Here in Africa, with an estimated 30% presence of the global mineral deposit and a dominant youthful force occupying 60% of the population, it is disheartening to note that these stupendous resources and potentials exist simultaneously with a deplorable 36% extreme poverty level in the continent. This paradox clearly illustrates how Africa’s wonderful natural resources have not impactfully benefitted the continental economy to promote sustainable development. Interestingly, this challenge can be traced to the non-beneficial application of old and ill-fitted systems inherited way back from the colonial period. Unfortunately, Africa; particularly the mining sector cannot achieve the badly-needed socio-economic transformation without adopting new, ‘Africa-fitted’ and pragmatic agendas.
Fully agreeing with the fact that for Africa’s mineral resources to be beneficial and valuable for all people, policy makers need to address not only the governance and sustainability of the extractives sector, but also to stimulate value addition and promote linkages with other sectors in the economy, I aim to suggest practical ways through which this goals can be achieved on a national, regional and continental level.
In the first place, value addition refers to the systematic procedure whereby a raw material/crude form of a typical mineral resource is taken as a primary input and refined to a more sophisticated level of being semi-processed or finished as a product, thereby boosting the previous economic value of the mineral resource. For example, the value of bauxite (natural aluminium ore) increases approximately six-fold when refined to alumina and to approximately 33 times if converted to aluminium metal alloy. This proof confirms that value addition can boost Africa's socio-economic growth and development in amazing ways! But how can this great goal be achieved?
On a national level, governments can stimulate value addition through the prohibition of the export of ores of mineral resources in their raw form and the establishment of minerals refinery plants. This will undoubtedly ensure that value addition activities like smelting and refining are carried out within the country. By this, the revenue generation for the government will increase, employment opportunities will be created at the refineries for citizens and sustainable development will be ultimately realized. This technique was utilized by the Tanzanian government on the 2nd of March 2017 and according to a report by allafrica.com (a reputable pan-african news source) on the 13th of July 2020, the year 2017 was described as being “a turning point for the country’s mining sector”. Concerning the promotion of linkages with other economic sectors, the government should encourage going beyond just refining mineral resources to the actual manufacturing of intermediate products used by the common citizens in sectors like agriculture, power and construction. This will promote linkages and make mineral resources beneficial to everyone.
On a regional level, to actualize value addition; individual African countries need to develop what Dr. Paul Jourdan (Adjunct Visiting Professor at Wits University, Johannesburg) refers to as Regional Mining Visions (RMVs), this initiative will help to increase the market size for individual countries for both export and import of semi-finished products and thus boost their economic growth. Ghana for example does not have all the needed raw materials for her industrialization but the ECOWAS region in which she belongs has all the major feedstocks. The Regional Mining Visions initiative will help to boost regional integration and trade, create a harmonious operating environment that supports the development of linkages. By coming together regionally, member countries can access a much more larger mineral resource base with better deposits which can now be mined in a more cost-effective way through larger and efficient refinery plants. All of these culminates in the transformation of the continent's extractive sector for sustainable development.
On a continental level, we must remember as H.E Luccock has rightly said that "No one can whistle a symphony, it takes an orchestra to play it". Africa has more to do as a continent but this can only be facilitated through goal-oriented collaboration. As a continent, to promote value addition in the extractives sector, there is a real need to conduct a continental geological assessment, this is needful because only a relatively small part of Africa has been adequately explored and even these explorations were carried out during the colonial period. It is rather alarming that since independence, few African countries have actually continued with systematic geological research of their countries. Socio-economic development will be actualized when we arise and unite as one to prudently assess the unexplored areas lying in our countries because then, extraction procedures can now be commenced which will further propel the African extractive sector forward. Furthermore, Africa on a continental level should make maximum use of the implemented beneficial policies like the African Continental Free Trade Area (AfCFTA) which was launched on January 1, 2021 to deepen and strengthen the African Mineral Market, encourage the consumption of finished mineral-resource products made continentally, develop value chains, attract foreign investment and promote continental development.
Apart from being an indispensable pillar in the continental economy, The African extractive sector is also fully loaded with amazing potentials as it is estimated to create 45 million jobs (20 million direct and 25 million indirect) and be a critical earner of foreign exchange for the continent at a rate more than 50% ( this is due to the rise of electric vehicles in which Lithium (majorly found in Africa e.g. Democratic Republic of Congo, Zimbabwe) is a major component powering the vehicles. Africa’s diverse mineral resources coupled with the creativity and energy of its youth populace will provide a powerful combination to realize the continent’s socio-economic development. It is worthy of note that these outcomes will only be achieved through the realization of all the mineral linkages outlined in the Africa Mining Vision by the African Union. To actuate this, African countries need to think and act together so as to realize the full benefits from mineral value chains and ultimately drive the urgently-needed industrial and human development of the continent.
